Preface

The main objectives of this supplement are to present how to conduct data analysis based
on various multiple regression models, starting with the simplest possible model within each
specific group of models. It is also presented special notes and comments are on the
characteristics, specifically the limitations of alternative models within each group of models,
including a not-recommended and the worst models so that the reader should have a good
reference and examples for selecting the best possible model, corresponding to their theoretical
knowledge and experiences in their fields.

This supplement presents the summary of the applications OLS and GLS multiple
regressions, or univariate regression models, specific for balanced panel data. Various groups of
models are presented using their equation specifications, starting with the simplest possible
equation specification within each group of models.

It is recognized that for each OLS regression, many alternative GLS regressions can
easily be presented, because many possible combination of the panel options are available, such
as the options effects specification, weights, coef covariance method, and weighting options for
random effects models. I would say that the researchers would never know the best possible
combination in advanced. So the trial and error method should be applied in order to obtain a
good fit model.

For instance, even based on a bivariate, say (X1,Y)it, there would be a lot of OLS
regressions can easily be developed, including the regression with trend, and the time-related-
effects (TRE) – refer to the main book and Agung(2011, and 2009a). In addition, a lot more GLS
regressions can be derived. Moreover, the models based on multivariate (X1,…,Xk,Y)it, for k > 1.
.
This supplement contains three chapters.
 Chapter 1 presents application of OLS estimation method for the OLS dummy variables
models (DVMs) presented in Chapter 6, of the main book, starting with the simplest equation
specification (SE), which can be applied to conduct the analysis using the LS estimation method,
based on various alternative models, such as cell-means models or ANOVA models, and quantile
regression models for numerical endogenous (impact, down-stream, or dependent) variables, or
numerical problem indicators, binary choice models for zero-one problem indicators, and
ordered choice models for ordinal problem indicators.

Chapter 2 presents the application of the OLS estimation method for univariate
heterogeneous regressions models by Group, and Time-Period (TP), ANCOVA models, and
Fixed-Effects Models (FEMs), which are in fact special ANCOVA models with the Firm or
time-variable T as the factors. Similar to the models presented in Chapter 1, this chapter also
presents various models with numerical, zero-one, and ordinal dependent variables. In addition,
generalized equation specifications (ESs) are presented based on multivariate (X1,…,XK,Y)it by
Group, and TP (Time-Period), such as the equation specifications in (2.51) to (2.64), and ESs in
(2.70) to (2.74), based on (V1,…,VK,Y)it, including the models with trend and TRE (Time-
Related-Effects). So the readers could easily develop various specific models, which are relevant
for their fields.

Chapter 3 presents more advanced regression models, namely the GLS multiple
regressions, or Univariate General Linear Models (GLM). It is recognized that each OLS
regression presented in chapters 1 and 2, as well as all other OLS regressions, can easily be
modified to various GLS regressions, using many possible combinations of the panel options,
such as the options for effects specification, weights, coef covariance method, and the weighting
options for random effects models. However, this chapter only presents limited number of
empirical examples.

Based on my experience as students’ advisor from various field of studies, I am very

confident this summary should be an excellence guide for conducting the data analysis of
students’ theses and dissertations.